Construction Claims: Root Causes & Avoidance

Construction projects are growing in number and becoming more complex, leading to long construction times, and involvement of many stakeholders. Projects today require highly specialized designs, detailed plans and specifications, high-risk construction methods, skilled resources, strong project management, and effective coordination. Even a slight negligence or improper due diligence can lead to claims. Khalid J. Memon (M. Eng., P. Eng., PMP), Business Administrator, Oil Facilities Projects Department, Aramco, Saudi Arabia, gives insights on the reasons for claims and how to mitigate or resolve disputes between parties.

A construction claim is either a claim against the Contractor by the Owner/Client or vice-versa. In both cases, the claim, in most cases, is regarding money and/or time required to complete the project. Today, construction projects face a higher risk of claims than any other industry. Claims can hinder completion of construction and cause delays in delivering projects. Sometimes, claims are not finalized even after completion of the projects.